Jump to content

Recommended Posts

image.png

Whether you agree or disagree, Forbes is saying that  the data is showing an end to Apple as you know it. With Apples cheapest phone costing $1,149 today compared to when it debuted in 2007, the price you paid has soared over 700% in 12 years.

2002 was the last time Apple slashed forecasted earnings and the stock has been punished since then falling 35% since it's peak in November 2018. This erased $446 Billion in Shareholder value, the biggest wipe-out of wealth in a single stock ever since stock trading began.

image.png

Per Forbes, since 2001 Apple has had steady revenue growth and by this measure the business seems perfectly healthy. Looking under the hood is a different story all together. iPhone sales peaked in 2015 and to compare the completed 2018 year to 2015, Apple sold 14 million phones fewer.

Key pieces to take into account from this story is as follows: 

  • 2010 iPhone 4 cost $199
  • 2014 iPhone 6 cost $299
  • 2019 iPhone cheapest model cost $1,149 a 500% price hike from 8 years ago.

Technology is supposed to be all about getting cheaper, yet Apple has done the opposite, reduced sales, but increased prices. Example of this is the TV business where years ago it cost thousands and thousands of dollars for a large flat-screen high definition TV and today you can get a 55 inch version from your local retailers for around $500. Cell phone prices have come down roughly 92% in contrast to Apples 500% increase. In 1984 Motorola sold their first cell phone for $4,000 and now the average price of a smartphone is $320 according to IDC research firm.

As Forbes states and I agree, it is amazing Apple has pulled this off and yet the future is not looking bright for them. Life-cycle disruption is coming from both China startups and Korea especially Samsung. 12 years ago research showed that only 120 million people had cell phones and today over 5 billion have cell phones.

An exploding growth market is reaching maturity and getting people to fork over $1,000 or even $1,500 dollars ever couple years for a new phone when equal quality products from other vendors at a fraction of the price is going to be hard to do. Apple has responded by announcing they would stop disclosing iPhone unit sales and they are going to no longer report average transaction price. Share holders deserve to know the facts of what is being shipped and prices per unit. iPhone generates 2/3 rds of Apples overall Sales.

Let that sink in that a publicly traded company is no longer telling it's investors how many phones it sells. With a stagnant product line and no real growth, Apples business is going no where under current leadership. If Apple was to cut prices to 2016 levels, it would have to sell 41 million additional phones to match 2018 revenue.

In 2007 Nokia was the Cell Phone King with over a Billion cell phones sold that year and the question was Can Anyone Catch the Cell Phone King? Nokia is only now attempting to start over from the ashes of the original company. Is Apple heading in that same direction?

https://www.forbes.com/sites/stephenmcbride1/2019/01/21/the-end-of-apple/#523ee1896dc0

Share this post


Link to post
Share on other sites

People are just trading their devices less often. This is going to be just as true for Samsung, but Samsung is much more diversified than Apple.

  • Upvote 2

Share this post


Link to post
Share on other sites

Yup pretty much. And even the bleeding edge innovation in this sector was pretty much hubris. Face ID and it’s competing face unlocks. Emojis or whatever that call those. Beauty modes on cameras. Notch. Bezeless. Nothing that really revolutionizes it.

 

  • Like 1

Share this post


Link to post
Share on other sites

How they claim that the cheapest iPhone is $1149 when iPhone XR is $750?

Today's journalism at its best.

But I agree, there is very little innovation last few years and people will keep their phones longer.   Samsung has cheap phones for countries where people can't afford expensive, top of the line technology phones.  I wonder though how much profit Samsung can get selling these phones.

Edited by ykX
  • Upvote 3

Share this post


Link to post
Share on other sites

Apple's real problem is that they are pricing themselves out of the market when everyone else is offering models under $500.  I read an article where Apple had sold leftover stock of the iPhone SE for $249 brand new and they sold out within three days.  At a time where smartphones are ubiquitous and more people are getting their smartphone repaired rather than replaced, Apple chose a poor time to have a new phone START at $750 and up.

When I replaced my iPhone back in June, I picked up the 8 Plus rather than the iPhone X because the 8+ still has a few features that the X did not have. . . . and I saved some serious cash doing just that.  If the XR started at $500 and they kept making the SE at $250, Apple would not be in so much sales trouble.  Then again, Apple seems to expects all the services that come with an iPhone to buoy them in case iPhone sales really fall off a cliff.

  • Upvote 2

Share this post


Link to post
Share on other sites

Apple is in the same problem any lopsided market mix companies have. They didn't realize that the iPhone is the only product that people will buy independent of their respective ecosystem of tech. 

I have an iPhone, a Windows laptop, an Android tablet and a soon to be repurposed old PC to be turned into a Neverware Chromium - Linux based cloud PC. I have it all. But I mostly use GApps. 

Now if you have an iPhone you have options. It introduces people to Apple. If you have a Macbook tho - you want an iPhone. If you have a Mac, you want an iPhone. If you don't buy an iPhone, you won't buy a Macbook. Period.

 

So that's the thing. Their golden goose needs to be the best of the best. The standard of the world. Hmmmm where have I heard that before? Their new 'notch & science' theme... Blah blah blah

 

 

 

 

  • Haha 2

Share this post


Link to post
Share on other sites
1 hour ago, Suaviloquent said:

Apple is in the same problem any lopsided market mix companies have. They didn't realize that the iPhone is the only product that people will buy independent of their respective ecosystem of tech. 

I have an iPhone, a Windows laptop, an Android tablet and a soon to be repurposed old PC to be turned into a Neverware Chromium - Linux based cloud PC. I have it all. But I mostly use GApps. 

Now if you have an iPhone you have options. It introduces people to Apple. If you have a Macbook tho - you want an iPhone. If you have a Mac, you want an iPhone. If you don't buy an iPhone, you won't buy a Macbook. Period.

 

So that's the thing. Their golden goose needs to be the best of the best. The standard of the world. Hmmmm where have I heard that before? Their new 'notch & science' theme... Blah blah blah

 

I"m so fed up with Win10 I expect I'll replace it with a Macbook next time around... and with it go to iPhone

  • Upvote 1

Share this post


Link to post
Share on other sites

I only use Windows for work..have a Windows 10 VM in my client's data center that I RDP into from my Mac laptop..I've been away from Windows at home for about 7 years now..avoiding it whenever possible..;)

Edited by Robert Hall
  • Haha 1

Share this post


Link to post
Share on other sites
1 hour ago, Drew Dowdell said:

I"m so fed up with Win10 I expect I'll replace it with a Macbook next time around... and with it go to iPhone

LOL, I feel that way every time I have to use the terrible Mac interface and trying to get it to do anything I really want. I love my Win10 laptop and desktop system.

I am curious what is it about Win10 that is making you so fed up?

1 hour ago, Robert Hall said:

I only use Windows for work..have a Windows 10 VM in my client's data center that I RDP into from my Mac laptop..I've been away from Windows at home for about 7 years now..avoiding it whenever possible..;)

LOL, I use a virtual Mac when I have to for my storage work and avoid the craziness of the interface whenever possible. Would rather have to work on a CentOS system than deal with Mac.

Share this post


Link to post
Share on other sites
52 minutes ago, dfelt said:

LOL, I feel that way every time I have to use the terrible Mac interface and trying to get it to do anything I really want. I love my Win10 laptop and desktop system.

I am curious what is it about Win10 that is making you so fed up?

LOL, I use a virtual Mac when I have to for my storage work and avoid the craziness of the interface whenever possible. Would rather have to work on a CentOS system than deal with Mac.

The MS apps for things like mail are terrible. Outlook sucks unless you're using an exchange server. Random slowdowns. Have to uninstall/reinstall apps to get them to work. The App store sucks so bad I don't even bother with it.  Terrible phone integration ... iPhone/Android... doesn't matter.  Terrible integration with other home devices. 

And overall, the interface just sucks. 

  • Thanks 1

Share this post


Link to post
Share on other sites

Speaking of Microsoft products, I've been in online training all day and will be the rest of the week for a CMS (Content Management System) (Sitecore) that has plugins for development in Visual Studio w/ C#.   A bit of a change of pace for me (I'm used to Eclipse and Java and IBM Websphere development).   But my client is using this CMS for their public website currently, and would like me to get up to speed on it.....though a bit awkward to use MS dev tools after years away from them. 

Edited by Robert Hall

Share this post


Link to post
Share on other sites
2 hours ago, Drew Dowdell said:

The MS apps for things like mail are terrible. Outlook sucks unless you're using an exchange server. Random slowdowns. Have to uninstall/reinstall apps to get them to work. The App store sucks so bad I don't even bother with it.  Terrible phone integration ... iPhone/Android... doesn't matter.  Terrible integration with other home devices. 

And overall, the interface just sucks. 

I hear you on most of those complaints.  They were more valid on previous versions of Windows (like Windows 8 or XP or ME).  Personally, I find that Win 10 works really well on my desktop AND my notebook.  YMMV.

  • Thanks 1

Share this post


Link to post
Share on other sites
4 hours ago, Drew Dowdell said:

The MS apps for things like mail are terrible. Outlook sucks unless you're using an exchange server. Random slowdowns. Have to uninstall/reinstall apps to get them to work. The App store sucks so bad I don't even bother with it.  Terrible phone integration ... iPhone/Android... doesn't matter.  Terrible integration with other home devices. 

And overall, the interface just sucks. 

Thank you, I can understand what you say as I have heard this from others too and yet with that I also have seen flawless use with crazy configurations.

For me at home, office 2016 working with my personal Frontier Unix mail just works, never a problem really. An occasional annoyance when they bounce the server as I have to close and open again outlook to connect, but everything else just works.

I will say that since at work Dell went to Office 365 globally, I really like it and have not had any of the normal quirks that show up in word, Excel, PowerPoint or any of the others. Office 365 on Windows 10 is just rock solid for the most part that I can think of right now.

Unlike many, I actually do not sync my phone to my computer. So keep them each isolated and am happy with how it all works.

Share this post


Link to post
Share on other sites
24 minutes ago, dfelt said:

Thank you, I can understand what you say as I have heard this from others too and yet with that I also have seen flawless use with crazy configurations.

For me at home, office 2016 working with my personal Frontier Unix mail just works, never a problem really. An occasional annoyance when they bounce the server as I have to close and open again outlook to connect, but everything else just works.

I will say that since at work Dell went to Office 365 globally, I really like it and have not had any of the normal quirks that show up in word, Excel, PowerPoint or any of the others. Office 365 on Windows 10 is just rock solid for the most part that I can think of right now.

Unlike many, I actually do not sync my phone to my computer. So keep them each isolated and am happy with how it all works.

Same here.  No need to mix Win 10 and Office 365 with an iPhone 8 Plus (at least not for me).

  • Thanks 1

Share this post


Link to post
Share on other sites

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




  • Social Stream

  • Similar Content

    • By Drew Dowdell
      After much speculation, it has come to light that Apple did propose to bid on Tesla back in 2013 for $240 a share, higher than the sub-$200 a share Tesla is trading at today, according to CNBC. Analyst Craig Irwin told CNBC that there was a serious bid from Apple and says that multiple credible sources have told him so.  
      Tesla is down more than 46% from its high in August 2018 when CEO Musk tweeted that he had funding secured to take Tesla private at $420 a share via a Saudi Soverign Wealth Fund, but that tweet turned out to be false, Tesla reversed course, and got Musk and Tesla in trouble with the SEC and further cost Musk the Chairmanship of the company. 
      Now that Tesla stock is trading in the sub-$200 range, it becomes a substantially more attractive acquisition target, not only for Apple, but for other companies as well.  The question remains what to do with Tesla's CEO Elon Musk.  Apple's insistence on Musk's departure was apparently what killed the deal back in 2013. 
      Reports are that Apple is working on its own car technology, but acquiring Tesla would substantially boost their progress. 

      View full article
    • By Drew Dowdell
      After much speculation, it has come to light that Apple did propose to bid on Tesla back in 2013 for $240 a share, higher than the sub-$200 a share Tesla is trading at today, according to CNBC. Analyst Craig Irwin told CNBC that there was a serious bid from Apple and says that multiple credible sources have told him so.  
      Tesla is down more than 46% from its high in August 2018 when CEO Musk tweeted that he had funding secured to take Tesla private at $420 a share via a Saudi Soverign Wealth Fund, but that tweet turned out to be false, Tesla reversed course, and got Musk and Tesla in trouble with the SEC and further cost Musk the Chairmanship of the company. 
      Now that Tesla stock is trading in the sub-$200 range, it becomes a substantially more attractive acquisition target, not only for Apple, but for other companies as well.  The question remains what to do with Tesla's CEO Elon Musk.  Apple's insistence on Musk's departure was apparently what killed the deal back in 2013. 
      Reports are that Apple is working on its own car technology, but acquiring Tesla would substantially boost their progress. 
    • By William Maley
      Since 2014, there have been numerous rumors about Apple's self-driving project known as Titan. At one time, the project had a 1,000 workers with the goal of designing and building a self-driving electric vehicle. But numerous issues and changes in vision has caused the project to be majorly behind scheduled. A new report from the New York Times shines a light at the current circumstances.
      According to sources with knowledge of the project, Apple signed a deal with Volkswagen late last year that would see the automaker provide less than two dozen of T6 Transporter vans to the technology company. Apple will equip the vans with their self-driving tech and be used as shuttles around their Cupertino base. The sources say the vans are "consuming nearly all of the Apple car team’s attention". A number of former Apple employees added that the project "lacked a clear plan beyond the vans, including any near-term commercial goals."
      Volkswagen wasn't Apple's first choice for an automaker partner. BMW and Mercedes-Benz were the tech company's first and second choices. Various discussions would be held with both German automakers, but would ultimately go no-where as they balked at Apple's request "to hand over control of the data and design." Other automakers were spoken to, but wouldn't go far as automakers were not ready to give up control or Apple wanted " a more attractive partner." Volkswagen, however, jumped at the chance, as it was seen as a way to help improve their reputation after the diesel emission mess.
      It's unclear whether this deal will only be for the vans or extend further. 
      Source: New York Times
    • By William Maley
      Since 2014, there have been numerous rumors about Apple's self-driving project known as Titan. At one time, the project had a 1,000 workers with the goal of designing and building a self-driving electric vehicle. But numerous issues and changes in vision has caused the project to be majorly behind scheduled. A new report from the New York Times shines a light at the current circumstances.
      According to sources with knowledge of the project, Apple signed a deal with Volkswagen late last year that would see the automaker provide less than two dozen of T6 Transporter vans to the technology company. Apple will equip the vans with their self-driving tech and be used as shuttles around their Cupertino base. The sources say the vans are "consuming nearly all of the Apple car team’s attention". A number of former Apple employees added that the project "lacked a clear plan beyond the vans, including any near-term commercial goals."
      Volkswagen wasn't Apple's first choice for an automaker partner. BMW and Mercedes-Benz were the tech company's first and second choices. Various discussions would be held with both German automakers, but would ultimately go no-where as they balked at Apple's request "to hand over control of the data and design." Other automakers were spoken to, but wouldn't go far as automakers were not ready to give up control or Apple wanted " a more attractive partner." Volkswagen, however, jumped at the chance, as it was seen as a way to help improve their reputation after the diesel emission mess.
      It's unclear whether this deal will only be for the vans or extend further. 
      Source: New York Times

      View full article
    • By dfelt
      iCar is a VW Mini Van

      According to story's at other sites, Apple is finally going to hit the road with their own autonomous auto. These auto's are going to be used to ferry employees around their new campus. Apple has partnered up with Volkswagen to use the T6 as their proof of concept in autonomous auto's. These vans will be outfitted at a VW assembly plant in Italy with the electric powertrain, sensors, software and battery packs.
      According to the NY Times story, Apple wanted to partner with Mercedes-Benz or BMW to develop their all electric self driving auto. This was all rebuffed after Apple wanted control and all data along with the design to be handed over to them according to people familiar with the talks. VW declined to comment on this matchup with Apple. Apple also declined to talk but insiders have said that Apples plans beyond getting these vans onto the campus is lacking in any direction and has led from the 1,000 person team of employees to just hundreds as others left for greener paths at Waymo and GM who both have autonomous auto's on the road now and will be expanding their fleet. Seems Apple who has a 50 auto fleet of Lexus SUV's that are daily testing their sensors and software and autonomous driving on ICE auto was unable to at first partner up with any auto company in the asian rim due to their requirements. Volkswagen behind in R&D compared to their german rivals and in the thick of a Diesel cheating scandal jumped at giving Apple all they asked for to gain a leg up in getting their EV auto R&D going. The original deadline to have these auto's on site and being used by the end of 2018 is going to be missed and first half of 2019 is more of a reality.
      Uber has announced the complete shutdown of their autonomous project and layoff of the 300 employees they had on this at their Arizona R&D office.
      NY Times Story Green Car Reports
  • My Clubs

  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...